The Emergence of Counterfeit Trade: A Literature Review

Purpose – Trade in counterfeit goods is perceived as a
substantial threat to various indus-tries. No longer is the
emergence of imitation products confined to branded luxury goods and
final markets. Counterfeit articles are increasingly finding their
way into other sectors, in-cluding the fast-moving consumer goods,
pharmaceutical, and automotive industries – with, in part,
severe negative consequences for consumers, licit manufacturers, and
brand owners alike. This contribution seeks to shed light on the
economic principles of counterfeit trade and the underlying illicit
supply chains.
Design/methodology/approach – An extensive literature review
was conducted that comprises contributions from different strands of
management research.
Findings – Though governments as well as management have
clearly identified the problem, very little is known – both in
practice and theory – about the mechanisms and structure of
the illicit market, the tactics of counterfeit producers, consumer
behavior with respect to imita-tion products and the financial
impact on individual companies. The diversity of the counter-feit
phenomenon underlines the need for further research in this area and
the development of company-specific measures for fighting product
piracy.
Research limitations/implications – The clandestine nature of
the counterfeit market limits direct accessibility to the
phenomenon. Consequently, the existing body of literature does not
necessarily cover all aspects of counterfeit activities. This review
helps to highlight existing research gaps but may not be able to
identify additional aspects of the phenomenon that, thus far, have
not been deemed relevant.
Originality/value – The paper critically reviews the current
state of research across different management-related disciplines.
From an academic perspective it may serve as a starting point for a
future research agenda that addresses the current knowledge gaps.
From a practi-tioner's perspective it is helpful for understanding
the relevant influence factors and for de-veloping appropriate,
state-of-the-art counterstrategies.